If a good is free, people will continue to increase consumption until total utility is equal to zero
Indicate whether the statement is true or false
false
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Refer to Figure 9-8. Suppose the U.S. government imposes a $0.25 per pound tariff on rice imports. Figure 9-8 shows the demand and supply curves for rice and the impact of this tariff. Use the figure to answer questions a-i
a. Following the imposition of the tariff, what is the price that domestic consumers must now pay and what is the quantity purchased? b. Calculate the value of consumer surplus with the tariff in place. c. What is the quantity supplied by domestic rice growers with the tariff in place? d. Calculate the value of producer surplus received by U.S. rice growers with the tariff in place. e. What is the quantity of rice imported with the tariff in place? f. What is the amount of tariff revenue collected by the government? g. The tariff has reduced consumer surplus. Calculate the loss in consumer surplus due to the tariff. h. What portion of the consumer surplus loss is redistributed to domestic producers? To the government? i. Calculate the deadweight loss due to the tariff.
Spot transactions
A) involve immediate settlement. B) may only take place in face-to-face trading. C) take place on-the-spot, rather than on an organized exchange. D) are relatively unimportant in financial markets.
During the 1990s and the first decade of the 2000s
a. polls have shown that U.S. citizens are more concerned about inflation than any other national problem b. the U.S. inflation rate reached double digits (10 percent or higher) c. the U.S. economy consistently experienced deflation (a falling price level) d. the U.S. inflation rate averaged about 8 percent per year e. the U.S. inflation rate averaged less than 3 percent per year
The accompanying graph shows the cost curves for Moe's mushroom gathering business, which is perfectly competitive. 
In the graph above, the average variable cost curve is labeled ________, the average total cost curve is labeled ________, and the marginal cost curve is labeled ________.
A. C; B; A B. C; A; B C. B; C; A D. A; B; C